De Grey Mining launches $395 mln equity raising for Western Australia gold project (updated)

De Grey Mining

08/05/2024 01:03

(Adds components of equity raising in paragraph 2-6)
       May 8 (Reuters) - Australian gold miner De Grey Mining
 DEG.AX  said on Wednesday it had launched a A$600 million
($395.34 million) equity raising  to meet a pre-condition to
access debt financing for its Hemi project in Western Australia.
    The equity raising will result in an issue of 545.5 million
shares by the company, De Grey said in an exchange filing. The
raising consists of an institutional placement of A$344 million
and a 1 for 7.95 pro-rata accelerated non-renounceable
entitlement offer for A$256 million.
    The placement issue price of A$1.10 represents a discount of
15% to the stock's last closing price of A$1.27 on May 7.
    "Proactively finalising the equity component of the (Hemi) 
project financing allows better planning and management of the
forward capital works plan including near-term ordering of
long-lead items and contractor appointments," De Grey said in a
statement.
    The miner expects full construction activities at the Hemi
gold project to start in the second half of 2024. It is
targeting first gold production at the mine in the second half
of 2026, when construction is expected to have finished.   
($1 = 1.5177 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru; Editing by Shailesh
Kuber and Subhranshu Sahu)
 ((Poonam.Behura@thomsonreuters.com;))